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UAV SFOC How To – Part 3 Insurance

As part of the SFOC requirements you need to carry proper UAV Liability Insurance. However you do not need to have it in place in order to make an application. So the search for insurance can be done in parallel with the application or you can wait until you see if the SFOC is approved.

Certificate applicants must be made aware early in the application process that they must subscribe for adequate liability insurance covering risks of public liability as outlined in section 606.02 of the CARs. This requirement must be a condition in the SFOC.

Liability Insurance – The Certificate applicant must stipulate in the SFOC application that they subscribe to liability insurance in accordance with the requirements in section 6.31 of this SI.

Inspectors are not required to obtain an actual copy of the UAV operator’s Insurance policy. A declaration of the fact that they have such insurance is sufficient.

You need to ensure the policy you get is proper UAV coverage. Some policies may be only general liability and potentially not include coverage while in flight.

Most general company liability insurance policies do not cover the operation of aircraft. As such, UAV operators must ensure that they have liability insurance which applies to the operation of aircraft.

Also MAAC insurance does not cover you for commercial operations.

The minimum coverage required by TC is $100,000. However most providers will generally not sell policies for less than $500,000 or if they do the cost will be much the same regardless. Typical policies are for $1,000,000 or $2,000,000. Some clients may require a specific minimum as well to be allowed on their locations, so keep that in mind when getting your policy.

Typically rates are in the following range:

$500,000, for $750-$850

$1,000,000 for $950-$1,100

$2,000,000 for $1,300 -$1,500

There may also be additional costs for multiple UAVs and multiple pilots. Operator experience, training, area of operation, and type of work can all impact the price as well.

It should also be noted that under the Exemptions that insurance is still a requirement, all commercial UAV use needs to be properly insured to be fully legal in Canada.

Two of the larger providers in the Canadian market that are up on the needs of UAV operators are:

We have used both of these companies, and currently are with with Capri. Calvin Reich is well versed on UAV regulations and is an active participant in many Facebook groups and forums regarding UAVs and insurance issues.

The UAV field is so rapidly evolving – both technology and applications – that I have a real concern with being ‘locked in’ via an insurance policy to a very specific combination of technology, payload, activity, location, etc. for much too long – till long after I find out I need to change these things in response to events on the ground (or ‘in the air’, I guess)

I don’t know how founded my concern is because I haven’t yet reached the insurance-hunting step (still developing).

In your experience, how long is the minimum term for these policies, and how restrictive are they regarding modifying the terms during their lifetime?